This tag covers liquidity conditions on a global scale: central bank balance-sheet policies (QE/QT), repo operations, the level of bank reserves and refinancing flows. Global liquidity acts as an ocean on which all assets float. Its expansion supports valuations; its contraction creates sometimes brutal tensions.
Automation makes liquidity more conditional and accelerates the propagation of financial shocks. Liquidity is often perceived as abundant as long as markets function normally. In an automated environment, it becomes more conditional and more sensitive to shocks. Withdrawals can synchronize…
Equity ETF flows are an early barometer of investor positioning and the gradual return to risk. After a phase of balancing between equities and bonds, recent reallocations point to a renewed appetite for risky assets — but not in an…
Rising index concentration — where the top ten companies can account for more than a third of total market capitalization — now coexists with increasing dispersion beneath the surface. These two dynamics, amplified by passive investment flows, are structurally transforming…
Rising index concentration—where the ten largest companies can account for more than one-third of total market capitalization—coexists with increasing performance dispersion beneath the surface. These two forces, amplified by passive investment flows, are structurally changing the nature of index investing.…
Bitcoin’s major cycles — rallies and corrections — line up with striking regularity with phases of expansion and contraction in global liquidity A complementary transmission channel runs through stablecoin Treasury demand — see our mapping of stablecoin reserves into the…
Passive investing has overtaken active management in the United States. Beneath the apparent simplicity of the ETF, three market variables are being reshaped: index concentration, intra-market correlations, and stress liquidity.
Liquidity — at three layers, from transaction depth to the Fed balance sheet — has shown the most stable correlation with market performance over twenty years, and the least integration into the analytical frameworks the public reaches for.
